Indian auto giants rev up for battle as Tesla enters domestic market
Government's push for green mobility, affordable pricing, and improvement in technology are the driving factors behind automakers' optimism in manufacturing electric cars
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The Indian auto industry on Tuesday welcomed a new player in the fledgling electric car market--billionaire Elon Musk-owned Tesla Inc. After a long stalemate with the Indian government over manufacturing, import, and taxes debate, the US-based auto giant has finally made a debut in India at at Bandra Kurla Complex (BKC) in Mumbai.
Tesla has launched three car models in the Indian market-Model Y SUV, along with two variants, Rear-Wheel Drive (RWD) priced at Rs 59.89 lakh and the Long Range RWD at Rs 67.89 lakh (ex-showroom).
Currently, the domestic Passenger EV market is dominated by three mega players--Tata Motors (55% market share), and Hyundai Motors India (15% market share), respectively. On the other hand, Mahindra and MG Motor are the distant third in the PV EV category at present. Maruti Suzuki India, which is the largest player in the PV category, is set make a debut in the EV category this year.
According to the annual report of Tata Motors, the company has sold more than 2 lakh units of EVs as of March 31, 2025. The maker of Currv, Nexon, and Tiago EV brands registered a revenue of Rs 8,187 crore in fiscal year 2025. Tata Motors' JLR arm is also working to transform its UK plant for EV production.
Auto giant Maruti Suzuki, which has not disclosed its FY25 EVs statistic yet, however, cut its maiden e-Vitara's production plans from 26,500 units to 8,200 units in the April and September period due to a supply crisis. Additionally, the company has also scaled back its lineup of EV launches to 4 instead of six by the end of 2030. As per the media reports, the automaker has indicated that it will launch the Fronx EV and the Maruti Suzuki Ertiga in the upcoming years.
Hyundai Motor India, which made a market debut in Indian stock exchanges in October 2024, has launched two PV EVs to date--Creta electric and Ioniq.
Mahindra & Mahindra launched BE6 and XEV9e last year, with the former clocking 30,179 bookings on Day 1. The company is a leading player in the wheeler EV segment already.
According to industry experts, the government's push for green mobility, affordable pricing, and improvement in technology are the driving factors behind automakers' optimism in manufacturing electric cars.
Additionally, as inflation cools down and spending picks up, automakers are launching electric vehicle (EV) models under Rs 25 lakh to broaden their customer base. Tata Motors, the EV market leader, offers models priced between Rs 8 lakh and Rs 22 lakh. In contrast, Hyundai has introduced two distinct EV models: the Creta Electric, starting at Rs 17.99 lakh (ex-showroom), and the IONIQ 5, priced at Rs 46.05 lakh (ex-showroom), targeting different segments of consumers.
The Indian government has also taken several initiatives to promote EV adoption, such as Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME) scheme, the Production Linked Incentive (PLI) scheme, cuts in EV import duties or EVs priced over US$35,000 from 100% to just 15 percent, among others.
According to the Global Clean Investment Monitor report, India's electric four-wheeler manufacturing capacity is projected to grow to 2.5 million units by 2030. The domestic EV car demand is expected to reach between 430,000 and 1.4 million units by he end of the decade from 1 lakh in 2024.
While the competition to become the EV leader intensifies, consumers will be the ultimate winners, with a wider range of options to choose from.
